FOR IMMEDIATE RELEASE			NEWS MEDIA CONTACT:
February 25, 2000					Michael Balmoris at 202-418-0253


STATEMENT OF FCC CHAIRMAN WILLIAM E. KENNARD 
ON CALLS PROPOSAL

I am very encouraged by what appears to be a responsible modification of the CALLS 
proposal.  I have publicly and repeatedly said, that, in order to win my support, the 
industry needs to consider the legitimate interests of residential and business consumers. 
The summary of the proposed changes filed today appears to be responsive to this 
concern. I look forward to hearing from consumer groups and from the states after a 
revised CALLS plan is put out for comment.  

It appears to me that the main  tangible, immediate consumer benefits of these 
modifications are:

? An agreement to remove at least $4.50 from the monthly bill in fixed flat charges for 
consumers who make few long distance telephone calls; this includes an agreement 
by the long distance companies to offer a basic schedule rate plan with no minimum 
charge for a period of 5 years;
? Over $2 billion in access charge reductions which the companies have pledged to 
pass through to both residential and business customers;
? An agreement to commence a proceeding before an increase in the SLC cap over $5. 
This will enable the FCC to ensure that any future increase, if necessary, will be cost 
justified based on the forward looking cost methods that we have used in other 
proceedings.

These changes appear to be substantial.   I look forward to hearing from the consumer 
community in the coming weeks, and to working with my colleagues for an expeditious 
resolution of these issues.  I applaud the companies for working with each other, the 
consumer community and the commission staff  to propose a principled compromise that 
will bring certainty and stability to the market.  This important step will help to dismantle 
the legacy regulatory structure and bring us into the Internet Age.